Ethereum is pumping, moving from about $250 to $275 in just a matter of days.
But many people believe that Ethereum is only getting started,
and a $400 price point could be soon on the horizon.
Today, I'm going to tell you exactly why Ethereum is going to be a top gainer in the market,
but, more importantly, I'm going to tell you exactly what Ethereum's price spike means
for the rest of the altcoins.
Let's get it.
What if I told you you could buy one token and make daily passive income
for multiple dApps and crypto platforms?
And what if that token only had a 20,000 max supply ever?
I bet you'd buy it.
I know I did.
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Alright, guys. Today, I'm going to be explaining to you why Ethereum's price has been increasing,
and we're going to look at the short-term outlook for ETH,
but, also, we're going to be looking ahead to the bull market
and why Ethereum's prospects are absolutely huge.
And, yes, I know you guys love altcoins.
Ethereum's price increasing is going to be so mega bullish for altcoins
that you won't even believe it.
And the reason for this is incredibly simple.
And at the end of this video,
I'm going to be explaining to you why you can expect the altcoin explosion to go hand in hand with Ethereum.
So what gives with the recent explosion that saw Ethereum's price spike up to 280 bucks?
You don't have to look further than decentralized finance.
With projects like Aave, Compound, Maker, Ampleforth and others,
Ethereum has now found its killer app, if you will.
You see, all throughout history, with each technological breakthrough,
there has to be a use case. Now,
let's go back as far as one of the most novel inventions or discoveries,
if you will, in the history of the world,
which is fire.
By itself, fire is destructive.
When released upon a forest, it causes destruction at scale.
When fire touches human skin,
it's harmful and, of course, can cause death.
However, when man discovered how to create and, more importantly, control fire,
suddenly, its use became apparent.
Fire could be used to keep warm on long cold nights,
but it could also be used to heat food and cook out bacteria and other harmful elements.
By itself, fire is not useful.
It is neither good nor bad,
but combined with a specific use case,
its value cannot be understated.
What good would have been the printing press without the Bible?
What use would the internet have been without the WorldWideWeb?
This brings us to the creation of Ethereum,
a decentralized smart contract platform.
For you who have been in crypto long enough,
I'm sure that, when Ethereum made its debut, you read up on it.
you studied what a smart contract was and how they can be useful.
I remember reading descriptions of how smart contracts worked.
A smart contract fires off when the obligations of an agreement had been met in an automated manner.
But they were just examples, mere what-ifs.
But, now, with decentralized finance,
we're seeing these "examples" of smart contracts actually come to fruition and have use case.
Now, we didn't go straight from point A to point B here.
Ethereum wasn't created solely for decentralized finance.
There were a lot of steps along the way.
It took us quite a long time to get here---
a long winding road, if you will.
In 2017, it looked like we had found Ethereum's use case, which was launching tokens. I mean,
think about all of the major cryptocurrency projects that were launched on Ethereum's platform.
They included, of course, EOS, Cardano, Tron, VeChain, BNB and countless others,
all of which have their own chains now.
They used Ethereum like they were bikes with training wheels.
As soon as they were able to ride on their own,
they dropped ETH like a bad habit.
But as we look back on the history of the tokens launched on the decentralized chain,
we see a plethora of black eyes and sores.
In fact, we see probably what actually was the final straw that broke the 2017 bull run's back---
the ICO craze.
Companies and scammers alike discovered that all they had to do in order to make some serious skrilla is launch an initial coin offering,
and people jumped at the opportunity to invest in ideas,
but let's be honest,
people weren't even really investing in anything other than hopes and dreams.
So many crypto projects raised millions
that would eventually be spent on coke, hookers and yacht parties.
Much of the money raised would never go toward a single line of code.
Investors were left holding the empty bags,
while the people behind these projects were on to the next thing.
And trust me, I've got plenty of completely worthless bags.
Now, this led to a bear winter of epic proportions that saw project after project leave Ethereum.
There was a time when I personally questioned whether or not Ethereum could hold on to the No. 2 spot in all of crypto.
I didn't really see even much use case for it other than Enterprise,
which, of course, has turned out to be pretty big.
But no one was excited about Ethereum in 2018 if we're honest.
But in 2019, this new buzz phrase "decentralized finance" became popular.
The phrase was shortened to only a word simply known as DeFi,
and now,
this has become the killer app for Ethereum.
Alright, I'm low on bullets,
so everybody scooch together.
And while Bitcoin maximalists want you to believe that this is just another one-hit wonder,
and DeFi will go back into the corner
as soon as Papa BTC starts its bull run,
that is simply not the case.
When we compare DeFi to the ICO craze,
you will see they can't really be mentioned in the same breath.
You see, what broke ICOs and really, in turn, broke the market was centralization---
the very thing that cryptocurrency and smart contract platforms are supposed to be against.
When ICOs raised millions of dollars for their tokens,
that money was flowing directly to founders.
There were people sitting at the top of these projects collecting funds.
There was no benefit to the community at large.
But with decentralized finance,
everyone who takes part benefits.
There isn't one guy sitting at the top of the pyramid collecting 200 bucks every time you pass GO.
At the heart of decentralized finance are two things---
automation and scarcity.
When you go to the bank to take out a loan,
you have to give them your firstborn basically in order to secure the loan.
Banks do whatever they can to disqualify you from getting the money you may need
especially since 2008.
Not to mention, you may get turned down for a loan simply because the banker is having a bad day.
But with DeFi,
taking out collateralized loans is an automated process.
Meet certain qualifications?
Get your loan.
Immediately.
Payment conditions are baked into that automation as well.
It removes human error or biases from the process.
In addition to automation, scarcity is what is really driving decentralized finance right now.
If you have 100 apples for sale at a festival with 100 people,
then everybody can have an apple,
but if you only have 50 apples for sale at a festival with 100 people,
then everyone can't have one.
Scarcity.
That means that 50 apples are worth more than they would be if there were 100.
It's simple supply and demand economics.
When you have more demand than supply, value increases.
There are decentralized applications everywhere that are taking the principles of automation and scarcity
to the next level.
And people are benefiting greatly,
mostly through what is called staking.
You take a part of the supply of a coin or token
and you separate it from the circulating supply
by staking them.
This causes the value of the remaining circulating supply to increase,
which also increases the value of the tokens that you are staking.
In addition to Ethereum's role in decentralized finance applications,
It also has staking coming directly to ETH
once a new upgrade to Ethereum, ETH 2.0, becomes a reality.
Anyone holding 32 Ethereum will be able to stake those ETH in order to earn returns on them as well.
So, for right now, we're looking at the price of Ethereum rising due to decentralized finance,
but over the long term,
once the upgrade is complete,
Ethereum will also see huge price increases itself
due to stakers removing Ethereum from the circulating supply
in order to earn rewards for themselves.
But that's great for ethereum and decentralized finance applications and tokens,
but what about for other altcoins?
How can altcoins and Ethereum mutually benefit each other?
Well, if you're new to the channel,
we've been looking at several low-cap altcoins over the past several weeks,
and we will continue to look for many more in the future,
including one later today.
If you've gone on this crazy altcoin journey with the BitSquad,
then you have no doubt discovered
that most of these up-and-coming altcoins are not on regular exchanges like Binance or KuCoin.
Now, we willl actually be looking at low-cap altcoin gems
on centralized exchanges in the coming week,
but most of the low cappers we've examined are on swap sites and decentralized exchanges.
Now, there are a plethora of reasons for this,
but this is the main thing that you should see.
Once altcoins make it to large centralized exchanges,
it's probably too late for you to see the massive gains.
Once a major exchange listing is secured for a small crypto project,
it explodes,
and your chance for 100X gains or more has probably slipped down the drain.
But these swap sites like Bancor, Uniswap, Balancer.exchange and others
are kind of hard to use for beginners.
You've probably seen that learning curve.
There's a big one.
You have to understand the relationship though between liquidity, volatility and slippage.
Once you learn how to use these sites to secure bags,
you'll be much better off, but it's hard.
Guess what, you aren't using Bitcoin to buy these low-cap or micro-cap gems.
In fact, most of these sites don't even have Bitcoin listed as an asset they support.
There's one coin that stands above the rest as the preferred coin of these decentralized exchanges,
and that's right,
it's Ethereum.
And that is vitally important.
You see, in 2016 to 2017,
when altcoins began moving,
they were attached at the hip to Bitcoin.
Think about it.
If you want to buy a specific altcoin,
you couldn't just head on over to Binance.com and buy it directly. That wasn't a thing back then.
For people in the United States, the process was this:
Go to Coinbase and buy Bitcoin.
Send that Bitcoin to whichever exchange you wanted to use.
Then use Bitcoin as the trading pair to get your brand new shiny altcoin.
But this is not the case anymore
as Bitcoin is not necessary to complete these transactions.
Ethereum is the new Bitcoin when it comes to trading pairs.
If you love low-cap altcoins,
you need Ethereum sitting around somewhere in a wallet
ready to pounce as soon as the latest altcoin pick comes in.
And this is something people are underestimating.
As altcoin season truly gets ushered in within the next few months,
Ethereum will be the necessary trading pair.
And this, accompanied by DeFi and ETH staking, will cause a major breakout for Ethereum
like you've never seen before
that could send Ethereum's price
somewhere between $10-20,000.
I would accumulate
as much as you possibly can
while you still can
before it's too late.
But now it's your turn.
What are your long-term prospects for Ethereum?
Do you think it can continue its dominance?
Or am I missing something that might cause it to falter in the future?
Let me know by dropping your comments down below.
I hope you enjoyed this video.
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please make sure to smash the like button and hit Subscribe
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Thank you so much for watching.
Have a blessed day.
BitBoy out.